SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

18. SEGMENTED, SIGNIFICANT CUSTOMER INFORMATION AND ECONOMIC DEPENDENCY

The Company operates in two segments:

(a) Energy and water conservation products (as shown under the column heading “EWCP” below), which consists of a (i) liquid swimming pool blankets which save energy and water by inhibiting evaporation from the pool surface, and (ii) food-safe powdered form of the active ingredient within the liquid blankets and which are designed to be used in still or slow moving drinking water sources.

(b) Biodegradable polymers, also known as TPA’s (as shown under the column heading “BCPA” below), used by the petroleum, chemical, utility and mining industries to prevent corrosion and scaling in water piping. This product can also be used in detergents to increase biodegradability and in agriculture to increase crop yields by enhancing fertilizer uptake.

The third product line is nitrogen conservation products used for the agriculture industry. These products decrease the loss of nitrogen fertilizer after initial application and allows less fertilizer to be used. These products are made and sold by the Company’s TPA division.

The accounting policies of the segments are the same as those described in Note 2, Significant Accounting Policies. The Company evaluates performance based on profit or loss from operations before income taxes, not including nonrecurring gains and losses and foreign exchange gains and losses

The Company’s reportable segments are strategic business units that offer different, but synergistic products and services. They are managed separately because each business requires different technology and marketing strategies.

Year ended December 31, 2023:

	EWCP			BCPA		Consolidated
Sales	$	572,845		$	37,751,961	$	38,324,806
Interest expense		387			498,279		498,666
Depreciation		17,411			1,668,908		1,686,319
Current and deferred income tax recovery (expense)		(35,341	)		168,076		132,735
Segment profit		(256,390	)		3,032,254		2,775,864
Segment assets		4,843,123			50,627,932		55,471,055
Expenditures for segment assets		-			4,990,675		4,990,675

Year ended December 31, 2022:

	EWCP			BCPA		Consolidated
Sales	$	528,462		$	45,312,007	$	45,840,469
Interest expense		-			292,949		292,949
Depreciation		33,876			1,243,555		1,277,431
Current and deferred income tax expense		18,898			126,958		145,856
Segment profit		(334,525	)		8,047,754		7,713,229
Segment assets		2,810,091			48,777,101		51,587,192
Expenditures for segment assets		-			1,981,307		1,981,307

Sales by territory are shown below:

	2023		2022
Canada	$	755,844	$	552,123
United States and abroad		37,568,962		45,288,346
Total	$	38,324,806	$	45,840,469

The Company’s long-lived assets (property, equipment, leaseholds, right of use assets, intangibles, and goodwill) are located in Canada and the United States as follows:

	2023		2022
Canada	$	142,577	$	150,890
United States		17,958,778		14,699,896
Total	$	18,101,355	$	14,850,786

Three customers accounted for $20,482,798 (53%) of sales made in 2023 (2022 - $27,775,616 or 61%).